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Hilton Garden Inn Introduces Project Accelerator for Hotel Developers

Category: Hotels, Posted:02 Sep 2023 | 10:59 am

Those familiar with my preferences know that I am not easily impressed. I tend to see things in a straightforward manner with few gray areas. However, I must admit that I was genuinely inspired by the recent launch of Hilton Garden Inn’s recent innovative development model roll-out in Bangkok.

While Hilton categorizes it as “Upper Midscale,” to me, it represents an excellent and affordable project that aligns well with market demands. Here are some compelling reasons why I find it appealing:

  1. Thoughtful Design: This product was meticulously crafted by experienced designers who considered extensive customer research and specific nuances inherent in various Asia Pacific models. The space planning is both precise and guest-centric.
  2. Owner-Centric Approach: Hilton has approached this prototype with a focus on owners’ returns. In Thailand, the estimated cost per room is THB3 million, with an additional THB400,000 allocated for furniture, fixtures, and equipment (F, F, and E). Given the anticipated average room rate of THB2,500 in most Thai locations, it presents a financially sound model.
  3. Cost Certainty in Inflationary Environments: For hotel developers aiming for returns during the pre-construction phase, having a clear understanding of costs in a high-inflation environment serves as a valuable risk mitigation strategy.
  4. Prefabrication/Components: A noteworthy advantage is that a significant portion of the hotel room fit-out has been designed as components that can be prefabricated in Vietnam. Why Vietnam over China? Vietnam has been chosen due to fewer supply chain disruptions. Only the bathroom fixtures and fit-out are exceptions and not part of the components.
  5. Enhanced Build Efficiency: A persistent challenge for midscale hotels is ensuring build quality. This prototype promises faster and more efficient construction and installation processes, ultimately delivering a superior product to guests and ensuring quality finishes for property owners. It also streamlines design processes, eliminating the need to reinvent the wheel. Additionally, Hilton provides support for F, F, and E procurement.

Summing it all up, I rate the new Hilton Garden Inn model as a strong contender for urban, micro markets, and high-growth resort properties located away from the beach. The substantial investment of time and resources by Hilton in developing such a practical and developer-friendly module deserves strong consideration by mid-scale hotel developers.

To connect to Hilton in Asia and learn more about the model CLICK

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